March 24, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) released a statement on Saturday (23) addressing the recent discussions surrounding a salary revision for its senior management and professionals, which has garnered public attention and sparked controversy.

According to the statement, the salary adjustment for the period 2024-2026 was the outcome of a collective agreement reached between the CBSL Governing Board and employee representatives.

This decision, made independently prior to any recommendations from the Committee on Public Finance (COPF), was communicated to the COPF on March 16, 2024.

In response to the situation, the Chairman of the COPF has advised that an independent committee review the collective agreement to increase salaries for CBSL staff, proposing revisions across all employee categories within the institution.

Emphasising its autonomous role as the apex financial institution in Sri Lanka, the CBSL operates under the powers vested in it, first established under the Monetary Law Act, No. 58 of 1949 and now governed by the CBSL Act, No. 16 of 2023.

Furthermore, the CBSL underscores its responsibility in achieving and maintaining domestic price stability and ensuring the stability of the country’s financial system.

To fulfill this crucial national mandate, the CBSL relies on its experienced and professional staff.

The recent salary adjustment was aimed at retaining this experienced workforce to enable the institution to operate effectively and fulfill its responsibilities to the nation.

By: Staff Writer

March 23, Colombo (LNW): FitsAir, Sri Lanka’s low-cost airline, yesterday announced the launch of direct flights connecting Colombo and Dhaka, Bangladesh in April 2024.

It said the move represents a significant milestone in regional aviation, addressing the growing demand for affordable travel options between Sri Lanka and Bangladesh.

In light of Bangladesh’s rapidly expanding economy, attracting considerable interest from Sri Lankan businesses, Dhaka is emerging as a popular destination. Recognising this trend, FitsAir is committed to providing affordable, on-time, and efficient air connectivity to cater to the needs of this growing market.

FitsAir Executive Director Ammar Kassim said: “The Bangladesh economy is one of the fastest growing in the world, and we’re excited to offer competitive prices for business travellers and visitors alike. We anticipate our non-stop service to Dhaka will stimulate bilateral trade and economic growth.”

The newly added route will initially operate twice weekly, with an anticipated increased frequency in the summer, subject to government approval. FitsAir’s carefully crafted flight schedule allows for immediate connections to Male, Chennai, and Dubai from Dhaka. Additionally, exclusive benefits will be offered to corporate travellers to effectively meet their needs.

Scheduled to commence from 16 April 2024, FitsAir will offer attractive launch fares starting at Rs. 74,600. In addition to the new Dhaka route, FitsAir currently operates direct services to Dubai, Male, and Chennai from its hub in Colombo.

Turkish Airlines announced plans to ramp up its flight frequency from Istanbul to Colombo from four to five flights a week beginning 1 April and six flights per week commencing 14 May.

The additional service will offer passengers more flexibility in travel options, serving rising market demand and enhancing connectivity to and from Colombo via Istanbul.

In a statement, Turkish Airlines revealed the expansion of its services, noting that from 26 October, the flight frequency will escalate to seven flights per week — right on time to cater to the winter tourism season.

The expansion will enhance tourism, trade, and cultural exchanges between the two countries.

After a period of 11 years of service to Sri Lanka, Turkish Airlines has ushered in a new era by inaugurating direct flights from Istanbul to Colombo in October 2023. Previously, the airline had a stopover in Male before arriving in Colombo.

By: Staff Writer

March 23, Colombo (LNW): Sri Lanka’s tea crop improved during the past two months and its sales increased, tea broker firms highlighted.

The National Tea Sales average in February increased to Rs. 1,320.71 ($ 4.25) from Rs. 1,275.31 ($ 3.99) in the previous month.

In comparison to the February 2023 average of Rs. 1,438.20 ($ 3.96), the total average shows a drop of Rs. 117.49 YoY, while gaining $ 0.29 in dollar terms.

Forbes and Walker Tea Brokers said in terms of elevation-wise averages for February 2024; High Grown average for the month recorded an increase of Rs. 78.73 and a gain of $ 0.35 month-on-month (MoM), whilst a decrease of Rs. 233.59 YoY and a decrease of $ 0.10.

Medium Grown average for the month increased Rs. 70.45 and $ 0.32 MoM, whilst in comparison to the corresponding month last year shows a decrease of Rs. 100.53 and while gaining $ 0.26 YoY.

Low Grown average for the month recorded a gain of Rs. 17.79 and $ 0.18 MoM, whilst a decrease of Rs. 80.21 and gaining $ 0.44 YoY.

Forbes and Walker Tea Brokers said all elevations witnessed a decline during the first two months compared to the corresponding period of 2023 in rupee terms.

However, when compared to the same period, in dollar terms, High Growns recorded a decline, whilst the Medium and Low Grown elevations registered a positive variance.

Sri Lanka’s tea crop in the first two months of this year has increased by 3.50%, showcasing a promising growth compared to the same period in previous years.

January-February 2023 cumulative production totalled 84.09 million kilos, registering a drop of 2.14 million kilos or vis-à-vis 86.23 million kilos YoY.

Cumulative production for January-February 2024 totalled 38.53 million kilos, registering an increase of 1.30 million kilos vis-à-vis 37.23 million kilos year-on-Year (YoY), reflecting the resilience and strength of the industry, despite challenges posed by various factors.

Data analysed by Forbes and Walkers Research said the growth trend was evident across all elevations, except for Green Tea, which experienced a marginal negative variance.

High-grown elevation produced 7.89 million kilos up by 2.01% YoY whilst, medium elevation production was 6.1 million kilos up by 12.32% YoY and, the low-grown elevation crop was up by 2.10% to 24.19 million kilos. However, the green tea crop was at 333,271 kilos, down by 5.34% YoY.

When compared to 41.09 million kilos of January-February 2022, cumulative production of 2024 shows a decrease of 6.23% or 2.56 million kilos.

Sri Lanka’s tea production increased by 6.61% YoY to 19.99 million kilos, but the 2023 first two months crop dipped which registered 18.75 million kilos.

Once again, all elevations reported an increase in production, except for Green Tea, which saw a marginal decrease compared to February 2023.

When compared to the tea production figures from February 2022, which amounted to 18.22 million, February 2024 showed a notable increase of 1.77 million.

By: Staff Writer

March 23, Colombo (LNW): Sri Lanka businesses currently struggling to survive will re over in the coming months with the economic recovery is envisioned to be driven by rising consumer spending, along with the revival of the tourism sector and investment spending.

Household incomes were hit hard with the sharp devaluation of the Sri Lankan rupee (LKR), which sparked a painful inflationary shock.

But with the easing of inflation in the last quarter and its expected stability this year, households are expected to be able to rebuild their purchasing power, encouraging consumption once again.

“Businesses continue to grapple with a widespread sense of uncertainty – and this sense of ambiguity is mirrored in the latest findings of the LMD-PEPPERCUBE Business Confidence Index (BCI) survey,” business magazine LMD reveals, in its March edition.

It reports that “23% of survey participants are positive about the economy ‘improving’ over the next 12 months despite the two point drop from January (25%) – and 18% of respondents anticipate the economy will ‘stay the same,’ which reflects a percentage point difference over the previous month (19%).”

“But most tellingly, nearly six in 10 (59%) expect the economy will ‘get worse’ – up three percent from January’s 56%, although this outcome represents a 14% improvement from three months ago,” LMD adds.

The magazine also notes that in February, hopes that sales volumes will ‘get better’ over the next 12 months dipped with 27% anticipating such a scenario – that’s a two point drop compared to the preceding month.

“A quarter of survey participants (25%) expect their numbers will ‘stay the same,’ representing an increase from the previous 21%. And the proportion anticipating sales volumes to ‘get worse’ declined to 48% – down from 50% in the month prior,” it observes.

A spokesperson for the pioneering magazine adds, “Looking at the three months ahead, there’s a sense of gloom surrounding sales volumes improving with only 27% expressing optimism.”

“But economic sentiment remains subdued as nearly half of the survey participants expect their sales to get worse over the next three months,” she adds.

LMD’s publisher, Media Services, says the latest edition of the magazine has been released. And its digital edition has been shared on WhatsApp and the publisher’s social media platforms.

The magazine’s Cover Story features insights from leading lights from Sri Lanka’s export sector along with winners of export awards in the recent past.

By: Staff Writer

March 23, Colombo (LNW): India showcased its achievements in renewable energy, including the ambitious National Green Hydrogen Mission. Sri Lanka, aiming for 70 percent renewable energy generation by 2030, presented lucrative opportunities for Indian firms.

In response to Sri Lanka’s request, India pledged technical assistance and training programmes in solar, wind, biomass, and grid connection. Talks with Sri Lanka’s Power & Energy Minister highlighted a shared vision for advancing cooperation.

Minister of Power and Energy, Kanchana Wijesekera, shed light on Sri Lanka’s strategic approach towards enhancing its energy landscape through collaboration with India and other regional partners, emphasizing the significance of interconnectivity and the potential for renewable energy integration.

Speaking on the proposed interconnectivity with India and development partners, Minister Wijesekera underscored the importance of establishing connectivity not only with India but also with other BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) countries

A separate business event facilitated discussions between industry leaders, solidifying the foundation for future ventures. However, concerns still need to be addressed regarding transparency and local control in specific projects.

Both nations acknowledge the importance of transparency in harnessing clean energy. President Wickremesinghe’s support for India-Sri Lanka power grid connectivity reflects this shared vision.

Leading Indian companies like Adani Green are investing heavily, with a $750 million commitment to solar and wind projects. Plans for a regional transmission corridor further demonstrate India’s dedication to energy integration.

Furthermore, India’s upcoming LNG supply and support for an offshore regasification terminal cement its commitment to Sri Lanka’s energy diversification and long-term needs. This collaboration sets up both nations for a brighter, cleaner energy future.

Highlighting the regional implications of such partnerships, he stressed that these connections would enable Sri Lanka to leverage its excess renewable energy potential effectively.

While acknowledging the immediate benefits of importing power to address Sri Lanka’s energy needs, Minister Wijesekera outlined a broader vision for the future.

He articulated that as investments pour in and infrastructure develops, Sri Lanka aims to transition from a net importer to an exporter of renewable energy, thereby achieving energy independence.

Dispelling misconceptions about the affordability of renewable energy, Minister Wijesekera cautioned against underestimating the investment required for its integration.

He revealed that Sri Lanka anticipates needing a substantial investment of approximately $7 billion over the next six years (2024-2030) to bolster its infrastructure, particularly in transmission lines and grid development, to accommodate renewable energy requirements.

Acknowledging the fiscal constraints faced by the government, Minister Wijesekera emphasized the indispensable role of private investment in financing the necessary infrastructure development.

He underscored that while the government cannot solely bear the burden of such a significant investment, private sector involvement is crucial to realizing Sri Lanka’s renewable energy ambitions.